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8. Suppose company XYZ must decide whether or not to accept a one-time order from a newr customer. The company has sufficient spare capacity to
8. Suppose company XYZ must decide whether or not to accept a one-time order from a newr customer. The company has sufficient spare capacity to accommodate the order. Then: a] Managers of company XY Z must ensure that the selling price to the one-time customer covers the spare capacity b] Having spare capacity, managers should never accept the order, waiting for better market conditions c] Managers should make decisions based on the contribution margin of the customer's order d] Managers should ignore the consequences that accepting the one-time order will have on its relations with regular customers 9. Depending on how costs behave, management accounts classify them as: a] Fixed or variable b] Direct or indirect c] Relevant or irrelevant d] None of the above 10. For financial reporting purposes, under throughput costing, inventoriable costs a] Always include administrative costs b] Always exclude administrative costs c] Are always equal to inventoriable costs under variable costing d] Always exclude the cost of direct materials
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